Author Archives: Susan Cox, M.Acc., CPA

The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, that clarifies the application of the new leases guidance to land easements. Lease amendments (ASU 2016-02 and 2018-01) are effective for public entities with annual periods beginning after December 15, […]

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) released the ERM (Enterprise Risk Management) Framework: Enterprise Risk Management–Integrating with Strategy and Performance on September 6, 2017. This is COSO’s first significant update to the original 2004 ERM document, Enterprise Risk Management–Integrated Framework. The provisions of the updated ERM framework become testable on the […]

FASB Simplifies Financial Instruments

The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The provisions of the new ASU are effective for fiscal years beginning after December 15, 2018. The content becomes testable on the CPA Exam January 1, 2019. ASU No. 2017-12 […]

Statement of Auditing Standards (SAS) No. 133, Auditor Involvement With Exempt Offering Documents, was issued July 26, 2017, and provides performance requirements for auditors involved with documents for exempt offerings such as municipal securities; securities issued by not-for-profit religious, education, or charitable organizations; crowdfunding; small issues of securities such as Regulation A offerings; and franchise […]

FASB Simplifies Financial Instruments

The FASB issued Accounting Standards Update No. 2017-11, which simplifies accounting for certain financial instruments and will be testable on the CPA Exam in April 2019. Taking FAR in Q2 2019 or later? You’ll want to know this material!

The PCAOB addressed critical audit matters in a new standard. Parts of this standard are testable on the CPA Exam in the first quarter of 2018.

Is you’re testing for FAR on the CPA Exam in 2017 Q4 or later, the GASB’s Omnibus 2017, an omnibus that clarifies a wide range of accounting and financial reporting issues, will be testable.

Topic 715

Testing for FAR next January? ASU No. 2017-07, Compensation – Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, an amendment to Topic 715, will be testable on the exam.

Form AP

PCAOB No. 2015-008, a new auditing rule designed to improve transparency regarding both the engagement partner and “other accounting firms” that may have taken part in the audit of issuers, will be testable this April 1.

The FASB recently issued ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This content will become testable on the CPA exam in January 2018.